Pitts economic, administrative and commercial policies Flashcards
What is the Sinking Fund?
The Sinking fund was a fund to left to the side to try and deal with national debt.
How did Pitt change the Sinking Fund?
When Pitt got started the National Debt was £238 million in 1783 and was reduced to £227 million in 1793 but this was rendered useless after the French Revolution.
The Sinking Fund was corrupt as the 6 officials that took care of it would take a portion for their own personal gain. Pitt appointed MPs that would be responsible with the Fund.
What was the problem with smuggling?
It decreased the governments revenue and almost 1/5 of the country’s imports were from smuggling. They usually came from Cornwall.
What was Pitts solution to the smuggling problem?
He made 2 laws in 1784:
The Hovering Act which meant hat authorities could search ships up to 12 miles away from the shore to search for any contraband and make sure they go to the legal ports
The Commutation Act lowered duty on imports, to discourage smuggling, as it wasn’t as valuable. The tea tax was lowered from 119% to 25%. The government got £200,000 in 1 year in taxes were changed, and more boats came through the legal route.
Which of Pitts taxes were well received by the public?
Pitt taxed the rich on the luxury items only they bought like: servants, wigs, carriages, gloves, hats.
Pitt also raised taxes for the poor on windows and candles, so some people boarded up their windows to avoid paying that tax.
This rose the tax income by 47% from 1783-84
Which of Pitts taxes weren’t well received by the public?
Pitt tried to tax coal but it never got out of Parliament as most MPs opposed it
Pitt taxed linen and cotton in 1784 but it had huge economic drawbacks so it was withdrawn.
What were sinecure jobs? (administrative policy)
Jobs the King gave his friends with little to no work involved which had a good income
What did Pitt do to the sinecure jobs?
administrative policy
Pitt didn’t like the idea of them as it was a waste of money, so he waited till the job holder died and didn’t renew the job. In 1801 28 of these jobs were gone. He did this to avoid any conflict in parliament. He was given one by the King and refused because he wanted to be a man of the people.
What was the Treasury Commission of Audit?
This was made in 1785 to take a look at public expenditure.
What was the central Stationary Office?
This was made in 1787 to make sure the right amount of money went from the stationary to departments.
What was the Consolidated Fund Act?
This was made in 1787 so most revenue collected was paid to a single Treasury so the government departments could bid for the money, giving the Treasury more control of where the money goes and government spending, which helped the administration be more efficient and led to less confusion economically.
What happened to Britains imports revenue between 1783-1790?
The value of British imports doubled to
£20 million between 1783-90 because of the increasing revenues from import takes and duties.
What happened to Britains exports revenue between 1783-1790?
Exports rose from £12.5 million to £20 million, helping British industries and trade flourish and grow
What did Britain do in regards to trading with America?
After the American War, Britains commercial supremacy was compromised but in the Navigations Act, which protected British shipping from foreign competition, were held tightly. In 1783 America was banned from trading with the West Indian Islands and in 1787 and 1788 it was banned from trading with France and the Spanish islands for cheaper fish to protect British farmers and fishermen. This helped boost Britains exports again till it was the same as before the war.
What was the Eden Treaty?
This was a deal with Britain and France where Britain accepted Frances wine at the same rate as Portugese wine and France accepted Britains exports at a tariff of 10-15%. Britains silks were excluded from this deal, which was exploited by Northern England
